FCCPC probes airfare hikes on South-East, South-South routes

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The Federal Competition and Consumer Protection Commission has expanded its investigation into what it described as suspicious and potentially exploitative increases in domestic airfares, especially on routes serving the South-East and South-South, as the festive travel season begins.

In a statement issued on Friday, the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the widened probe follows a new wave of public complaints alleging coordinated price manipulation by some airlines.

The development comes days after the National Assembly summoned the Minister of Aviation over the persistent surge in ticket prices and growing allegations of collusive conduct among operators.

The Senate resolution followed a motion by Abdulfatai Buhari (APC, Oyo North), who warned that the soaring prices threaten national mobility and could disrupt holiday travel.

“In the last three months, Nigerians have been complaining about the outrageous airfares being charged by the airlines,” Buhari said during plenary.

He noted that one-way tickets on some domestic routes — particularly in the South-South and South-East corridors — have risen by as much as 150 per cent, with prices now exceeding N300,000.

Current fares show a one-way ticket from Abuja to Lagos costs between N400,000 and N650,000.

Ijagwu said the commission is now scrutinising the pricing templates and ticketing behaviour of airlines on the affected routes to determine whether the fare spikes violate the Federal Competition and Consumer Protection Act, 2018.

“Following public inquiries, the Federal Competition and Consumer Protection Commission (FCCPC) today announced an expansion of the scope of the existing investigation into pricing templates behind rates charged for tickets by some airlines on some domestic routes with a view to establishing possible violations of the provisions of the law.

“Concerns have been expressed widely in the past few days over what appears to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes, especially in the South-East and South-South, as the festive season begins.

“The ongoing investigation targets operators on the identified routes,” the statement read.

The latest intervention comes months after major carrier, Air Peace, filed a suit seeking to restrain the FCCPC from probing its pricing mechanism.

The commission had earlier launched an inquiry after receiving multiple complaints of arbitrary fare increases across several routes.

Ijagwu clarified that the investigation is “without prejudice” to the ongoing litigation, saying the FCCPC remains legally empowered to act in the public interest.

FCCPC Executive Vice Chairman/CEO, Tunji Bello, stressed that the agency is not a price control board but is mandated to protect consumers from exploitation.

“For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers.

“When we receive petitions or find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise,” he said.

He added that the commission would act decisively where evidence indicates that consumer welfare or market competitiveness is being undermined.

Under Section 17(b) of the FCCPA, the Commission is empowered to monitor economic activities and identify anti-competitive, anti-consumer protection and restrictive practices. Section 17(e) authorises it to carry out investigations as necessary.

Although the FCCPC does not set prices, the Act obligates it to ensure fair pricing and protect consumers from excessive, opaque, misleading or collusive pricing practices.

In view of the recent airfare spikes, the Commission said it is examining pricing patterns, the basis for the increases and any conduct that may undermine competition. It pledged to apply appropriate enforcement measures where violations are confirmed.

“The commission will provide further updates on the ongoing aviation investigation in due course,” the statement added.

This is not the first time domestic airlines have faced regulatory scrutiny over pricing practices.

In 2022, the FCCPC and the Nigerian Civil Aviation Authority queried several carriers over a uniform base fare increase that raised concerns about cartel-like behaviour.

The commission has in recent years intensified oversight of sectors with high consumer exposure — including digital lending, electricity, e-hailing and aviation — citing the growing need to protect Nigerians from opaque practices amid economic hardship.

Nigeria’s aviation sector continues to battle forex scarcity, high aviation fuel costs, steep maintenance expenses and limited competition, factors often blamed for rising fares.

However, stakeholders argue that these challenges do not justify sudden, synchronised price hikes across multiple airlines.

A business, investment, infrastructure and property correspondent currently with The PUNCH, Aina is a media professional with over three years experience

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